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Taiwan’s Ministry of Economic Affairs has called for manufacturing giants in the country to combine forces and form an AMOLED research and development alliances, helping to boost the development of an integrated supply chain for smartphones.

CENS reports that the demand for AMOLED panels has grown rapidly, with global shipments totalling more than 10 million units in a single quarter, but Korean vendor Samsung has dominated the market, leaving Taiwanese companies with lower production output.

With Samsung pushing ahead with mass production of panels at its 5.5-generation plant, the company is to build a new 8.5-generation plant capable of boosting capacity and protect its status as the leader of AMOLED panel production. In contrast, Taiwanese vendors are producing panels in their own 3.5-generation plants.

Officials have already received support from AU Optronics Corp, the first manufacturer capable of mass producing AMOLED panels in Taiwan, which has called for HTC, Acer and Asus to join them and form an alliance.

The new alliance will seek the improvement of yield rates in AMOLED panel production, helping Taiwanese companies to seek bigger orders from customers seeking the display panels.